Texas beer bills headed for critical vote Friday

The package of legislation that would significantly alter how beer is packaged and sold in Texas is scheduled for a full House vote on Friday.

If it passes, the bill heads to Gov. Rick Perry for his signature. Rick Donley, president of the Beer Alliance of Texas and a vocal supporter of the bills, said members of the governor’s staff attended certain meetings during the year-long, pre-session process of crafting the legislation and hammering out compromises among various interest groups. The office is up to date on what the bills would do.

The bills, which would represent the most significant legislation affecting beer sales in 20 years, involve some strong compromises, but are seen by most craft brewers as a significant boost to their business.

We have a negotiated package of five bills (the craft brewery bills SB 515-518, SB 639) with agreement between craft breweries (both shipping breweries and brewpubs), beer distributors, consumers and even ABInBev. The bills are stapled together so all five have to pass in order for any of them to become law. Here is the summary of what they do:

Grant Texas packaging breweries the right to sell their products directly to consumers for on-premise consumption (SB 518).

Grant Texas brewpubs the right to sell their beer to distributors and allow for limited self-distribution (SB 515).

Adjust Texas small brewers self-distribution limits to lower how much a brewery may self-distribute but increases the size of brewery that can self-distribute (SB 516-17).

Codify the rule against “reach-back pricing”, prohibit distributors from making payment to breweries in exchange for territorial exclusivity and codify certain contractual relationships between breweries and distributors (SB 639).

We ask that you please email your Texas House Representative and ask them to vote FOR the entire package of craft brewery bills SB 515, 516, 517, 518 & 639. All five bills must pass or else all five die.